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Australian Dollar Hammered on Imminent PM Change

The Australian dollar had a shocker on Thursday on the back of domestic political uncertainty. Per reports, current Australian Prime Minister Malcolm Turnbull is likely to be replaced by Peter Dutton before the week is out.

The Australian dollar is on course for its worse day since February after a one-cent fall against the US dollar to $0.724.

Australia is facing one of its greatest periods of political instability in recent memory and this is expected to culminate this week with the ousting of current Prime Minister Malcolm Turnbull.

On Thursday, PM Turnbull said that bullying tactics had been employed by right-wing media and a small group of conservatives within the Liberal party in order to induce a leadership change and slide the party to the right.

Turnbull has announced that he will not stand as a candidate should former Home Minister Peter Dutton achieve enough signatures to force a leadership vote; instead, Turnbull says, he will leave parliament.

As a result of what the Financial Times have called “Italian-style” politics, the Australian dollar slumped across the board. Further to aforementioned losses against the US dollar, it fell to a fifteen-week low against the euro, at €0.628, and it slid below parity with the Singapore dollar, against which it now buys only S$0.996. Against the New Zealand dollar, the Aussie weakened to N$1.092 – a three-week low.

Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.

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